What are the effects of bankruptcy?

  • Once a receiving order is made, no proceedings can be taken against or continued with against the debtor/bankrupt or the debtor’s/bankrupt’s assets without the leave of the court.

  • The DGI becomes the receiver of the debtor’s/bankrupt’s property.
  • The DGI will take possession of all books of account and other papers and documents in the possession, custody or control of the debtor/bankrupt relating to his property or affairs, and may take into his possession all or any deeds, books, documents and other property of the debtor.

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